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Strategic safety stock placement in supply chain design with due-date based demand

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  • Funaki, Kenichi

Abstract

We present a strategic safety stock placement model in supply chain design for assembly-type product with due-date based demand, where demand data are based on dates when company has to ship to customers rather than order receiving dates. We formulate multi-echelon stock placement by guaranteed-service model with demand propagation equations through backward explosion, where demand can be either stationary or nonstationary. The stock placement model is incorporated into network design problem and its optimization procedure is provided. We show effectiveness of the optimization procedure and other significant features of the model through numerical examples of a machinery product supply chain.

Suggested Citation

  • Funaki, Kenichi, 2012. "Strategic safety stock placement in supply chain design with due-date based demand," International Journal of Production Economics, Elsevier, vol. 135(1), pages 4-13.
    • Handle: RePEc:eee:proeco:v:135:y:2012:i:1:p:4-13
    DOI: 10.1016/j.ijpe.2010.11.015
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    References listed on IDEAS

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    Cited by:

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    2. Faicel Hnaien & Alexandre Dolgui & Desheng Dash Wu, 2016. "Single-period inventory model for one-level assembly system with stochastic lead times and demand," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 186-203, January.
    3. Barros, Júlio & Cortez, Paulo & Carvalho, M. Sameiro, 2021. "A systematic literature review about dimensioning safety stock under uncertainties and risks in the procurement process," Operations Research Perspectives, Elsevier, vol. 8(C).
    4. Schuster Puga, Matías & Minner, Stefan & Tancrez, Jean-Sébastien, 2019. "Two-stage supply chain design with safety stock placement decisions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 183-193.
    5. Zied Bahroun & Nidhal Belgacem, 2019. "Determination of dynamic safety stocks for cyclic production schedules," Operations Management Research, Springer, vol. 12(1), pages 62-93, June.
    6. Olivares-Benitez, Elias & Ríos-Mercado, Roger Z. & González-Velarde, José Luis, 2013. "A metaheuristic algorithm to solve the selection of transportation channels in supply chain design," International Journal of Production Economics, Elsevier, vol. 145(1), pages 161-172.
    7. Eruguz, Ayse Sena & Sahin, Evren & Jemai, Zied & Dallery, Yves, 2016. "A comprehensive survey of guaranteed-service models for multi-echelon inventory optimization," International Journal of Production Economics, Elsevier, vol. 172(C), pages 110-125.
    8. Debabrata Das & Nirmal Baran Hui & Vipul Jain, 2019. "Optimization of stochastic, (Q, R) inventory system in multi-product, multi-echelon, distributive supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(5), pages 405-418, October.

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